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Hello, I was wondering if you could help me out with these questions? Question 1 5 pts A firm you are analyzing has had the
Hello, I was wondering if you could help me out with these questions?
Question 1 5 pts A firm you are analyzing has had the following returns the past 5 years: 27.0%, 13.0%, 18.0%, -14.0% and 9.0 %. What are the standard deviation and variance of the past five year returns? 0.1531, 0.0234 0.1369, 0.0187 0.1531, 0.0187 Flag this Question Question 2 5 pts A stock has had returns of 16.12%, 12.11%, 5.83%, 26.14%, and -13.19% over the past five years. What was the holding period return for the stock? 50.86% 150.86% 58.04% Flag this Question Question 3 10 pts You are constructing a two stock portfolio based on the information provided below. What dollar amount will you invest in each stock to achieve the desired return goal? Stock X Expected Return Stock Y 14.0% 9.0% Goal Return of Portfolio: 12.90% Dollar Amount to Invest: $20,000 X = $15,600; Y = $4,400 X = $4,400; Y = $15,600 X = $13,600; Y = $6,400 Flag this Question Question 4 10 pts Your stock portfolio contains 4 stocks with the following betas and weight as a percentage of your portfolio. What is the portfolio beta? Weight Beta Stock A 50 pct. 1.80 Stock B 10 pct.. Stock C 20 pct. 1.15 Stock D 20 pct. 0.80 1.50 1.44 1.31 1.38 Flag this Question Question 5 10 pts Based on the following information determine the covariance and correlation between the returns of the two stocks. State of Economy Probability of State of Economy Return of X Return of Y Bear 0.10 -0.03 0.05 Normal0.65 0.11 0.062 Bull 0.25 0.092 0.25 Cov = 0.001086,Corr=0.9589 Cov = 0.001086,Corr=0.00019 Cov= 0.001092, Corr=0.9327Step by Step Solution
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